Avalon Labs has launched USDa, the first Bitcoin-backed overcollateralized stablecoin. The stablecoin has achieved a supply of 100 million USDa tokens, backed by $200 million in Bitcoin.
According to the project’s website, this over-collateralization ensures the stablecoin’s value is consistently supported by Bitcoin reserves. The company has also opened a $50 million deposit cap to offer participants annual percentage yields (APY) ranging from 20% to 50%, along with a 3x points rewards system.
Moreover, the project’s total value locked (TVL) has reached $318 million, reflecting the growing demand for the stablecoin. Avalon Labs is confident that the stablecoin will benefit from the CeDeFi model (centralized and decentralized finance), unlocking access to the $1.3 trillion Bitcoin market. The company believes USDa will increase Bitcoin’s liquidity and adoption, further establishing its value in the market.
Avalon Labs has also been recognized for its innovation, as it was recently named the winner of the second round of the Binance BNB Incubation Alliance.
The company’s success follows the recent all-time high of Bitcoin, which reached $89,000 for the first time in history. At the time of writing, Bitcoin is trading at $89,337.02, up 10.42% in the past 24 hours, with a trading volume of $137.64 billion based on CoinMarketCap‘s data.
